Which of the following theories emphasizes the interplay between the proportions in which the factors of production are available in different countries and the proportions in which they are needed for producing particular goods?

A. Porter's theory

B. Smith's theory

C. Ricardo's theory

D. Heckscher-Ohlin theory

D. Heckscher-Ohlin theory

Explanation:

Heckscher-Ohlin theory emphasizes the interplay between the proportions in which the factors of production are available in different countries and the proportions in which they are needed for producing particular goods. Heckscher-Ohlin theory asserts countries should focus on the production and export of goods in which they have a higher proportion of certain factors to produce. For example, U.S. should produce capital intensive goods because they have abundance of capital while Nigeria should produce petroleum products because they have crude oil in abundance.

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